EU Firms Redesign Supply Chains Amid Geopolitical Risks

• •64% of EU firms feel prepared for geopolitical risks, with larger companies leading.
• •Tariffs and regulatory compliance have surpassed logistics issues as primary trade obstacles.
• •M&A activity is rising as firms seek greater control over supply chains without reshoring.

A recent report by the European Investment Bank (EIB) indicates that nearly two-thirds of EU firms are preparing to manage geopolitical risks as they redesign their supply chains. The study highlights a shift in concerns from logistics disruptions to tariffs and regulatory compliance, which have become the main obstacles in trade. The percentage of EU importers adjusting their supply chains decreased from 50% to 37% between 2023 and 2025, while stockpiling fell to 17%. This reflects a growing recognition among businesses that geopolitical uncertainty is now a structural feature of global trade. The report also notes that larger companies are more prepared to handle these risks compared to small and medium-sized enterprises (SMEs). The findings suggest that while firms are not reshoring production, they are seeking greater control over supply chains through mergers and acquisitions, which may increase corporate financing needs without significantly boosting domestic output.